Mexico | GDP | 2023 | 2024 | Economic Data | World Economics (2024)

FAQs

Is Mexico getting better economically? ›

Mexico's GDP rose 2.5 percent in 2023 (fourth quarter, year over year), below the 3.0 percent median forecast. The Mexican economy is expected to moderate in 2024, following the trend of the U.S. economy.

Mexico ranks among the 15 largest economies in the world, with the fourth largest in the Americas after the U.S., Canada, and Brazil. However, it ranks much lower for GDP per capita, with discrepancies in income and investment by region, urbanity, and class.

Mexico City, with its GDP of 169 billion is richer than 17 individual US states and all six major territories. However, Vermont, the poorest US state in absolute GDP (not divided by population), is still richer than 25 out of 32 Mexican states.

Mexico's economy is highly dependent on foreign trade, especially on the export of industrial goods such as vehicles and vehicle parts, machinery and electrical appliances. About 80 per cent of Mexican exports are destined for the United States.

Understanding Mexico's Economic Underperformance

The author identifies four lines of argument to explain Mexico's sluggish growth: a poorly functioning credit market, policies that create incentives for informality, inefficient input market regulation, and international competition.

The United States is Mexico's most important trading partner, and U.S.-based companies account for more than half of Mexico's foreign investment.

The main sectors of the Mexican economy are services, manufacturing, commerce, agriculture, mining, energy production, and the financial industry.

Brazil's $4 trillion economy is roughly the same size as France's economy, while Mexico's $3.1 trillion economy is roughly the same size as Italy's economy. In terms of sovereign creditworthiness, Brazil's average rating is a sub-investment BB-, while Mexico's is BBB.

Mexico is also a significant producer of hydrocarbons and minerals and, thanks to its free trade agreement and 3000-km border with the US, it has established itself as a prime location for companies exporting to the world's largest economy.

When was Mexico's best economy? ›

This golden period between 1940 and 1970 is best referred to as the Mexican miracle. The GDP per capita-a measure of the average income earned by a person in a given country in Mexico has also increased. Today, Mexico has a large state-owned oil company called PEMEX which is a crucial player in the global oil market.

The country plays an active role in international organisations such as the United Nations and the Organization of American States (OAS). The World Bank classifies Mexico as an upper-middle-income country. However, the country is characterised by vast social disparities.

In decreasing order, the country's wealthiest economies or countries are listed below. France, Canada, The United Kingdom, China, The United States, Germany, Australia, Mexico, Japan, and Sweden are the world's richest countries.